• Earned net income from continuing operations of $3.7 million and diluted earnings per share of $0.03 in fourth quarter 2018
• On an adjusted basis, fourth quarter 2018 net income from continuing operations was $8.2 million and diluted earnings per share1 was $0.09
• Fiscal 2018 revenues grew 15%, adjusted net income from continuing operations was $34.8 million and diluted earnings per share1 was $0.40
• Board of directors approved a quarterly cash dividend of $0.025 per common share
Toronto, March 1, 2019 - GMP Capital Inc. (GMP) (TSX: GMP) today reported net income from continuing operations of $3.7 million and EPS of $0.03 in fourth quarter 2018 compared with net income of $8.0 million and EPS of $0.09 in fourth quarter 2017. Adjusted EPS1 was $0.09 in fourth quarter 2018 compared with $0.13 in the prior year quarter. Revenue from continuing operations was $38.3 million in fourth quarter 2018.
GMP recorded a net loss from consolidated operations of $5.0 million in fourth quarter 2018 including a net loss of $8.7 million in our U.S. fixed income business, which was classified as a discontinued operation following our agreement to sell to a third party late last year.
“We are pleased to have delivered adjusted EPS of 9 cents in fourth quarter 2018 despite challenging market conditions, which led to negative performance across virtually all asset classes. Our performance this quarter is a testament to the strength and resiliency of our core Canadian capital market business and the continued profitability and scale of our industry-leading Wealth Management business. Our strategy moving forward is clear: we are focused on Canada. This is a market we know better than most and where we are consistently top tier and profitable," said Harris Fricker, President and Chief Executive Officer, GMP.
2018 revenue from continuing operations was $177.8 million, up 15% compared with 2017. GMP recorded net income from continuing operations of $15.2 million and EPS of $0.14 in 2018 compared with a net loss of $44.3 million and a diluted loss per share of $0.70 in 2017. 2017 included a $52.0 million non-cash goodwill impairment charge recorded in our Capital Markets business segment. On an adjusted basis1 net income was $34.8 million in 2018, generating EPS of $0.40 compared with net income1 of $21.6 million and EPS of $0.22 in 2017.
Commenting further, Mr. Fricker said, “We are encouraged with both the solid earnings growth we reported in 2018 and considerable strides made toward sharpening the firm's focus on our highly profitable, scalable and core Canadian capital markets and wealth management businesses. Leading the way was a 46% increase in investment banking revenue with growth from cannabis, blockchain and energy sectors. Of note, our non-commodities businesses accounted for 70% of total investment banking revenue in 2018. Heading into 2019, the opportunity for our firm is continuing to do what we do best, namely helping small- to mid-cap companies efficiently access the requisite capital needed to grow their business."
For further information about GMP Capital Inc., our results for fourth quarter and year-end 2018 and the meaning of certain references, this earnings release should be read in conjunction with our audited annual consolidated financial statements as at and for the year ended December 31, 2018 (2018 Annual Financial Statements), our management's discussion and analysis for the year ended December 31, 2018 (2018 Annual MD&A) and our annual information form, which can be accessed on our website at gmpcapital.com and on SEDAR at sedar.com. Unless otherwise indicated, all dollar amounts are expressed in Canadian dollars and have been taken from our 2018 Annual Financial Statements prepared in accordance with generally accepted accounting principles (GAAP) under International Financial Reporting Standards (IFRS).